Wilmington Company has two manufacturing departments--Assembly and Fabrication. It considers all ...

Wilmington Company has two manufacturing departments--Assembly
and Fabrication. It considers all of its manufacturing overhead
costs to be fixed costs. The first set of data that is shown below
is based on estimates from the beginning of the year. The second
set of data relates to one particular job completed during the
year--Job Bravo.

Estimated Data

Assembly

Fabrication

Total

Manufacturing overhead
costs

$

2,520,000

$

2,880,000

$

5,400,000

Direct labor-hours

90,000

54,000

144,000

Machine-hours

36,000

180,000

216,000

Job Bravo

Assembly

Fabrication

Total

Direct labor-hours

19

11

30

Machine-hours

11

14

25

Required:

1. If Wilmington used a plantwide predetermined overhead rate
based on direct labor-hours, how much manufacturing overhead would
be applied to Job Bravo?

2. If Wilmington uses departmental predetermined overhead rates
with direct labor-hours as the allocation base in Assembly and
machine-hours as the allocation base in Fabrication, how much
manufacturing overhead would be applied to Job Bravo?

is available for the company as a whole and for Jobs P and Q ( all data and questions relate to the month of March) Molding Fabrication Total Estimated total machine-hours used 2 ,500 1 ,500 4,000 Estimated total fixed manufacturing overhead $12,250 $16,350 $28,600 2.30 3.10 Estimated variable...

for the company as a whole and for Jobs P and Q ( all data and questions relate to the month of March): Molding Fabrication Total Estimated total machine-hours used 2 ,500 1 ,500 4,000 Estimated total fixed manufacturing overhead $ 10

Answer Preview :

Solution-1 The first step is to calculate the estimated total overhead costs in Molding and Fabrication: Molding: Using the equation Y = a + bX, the estimated total manufacturing overhead...

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